After the Dust Settles: Are You Ready For The Tough Financial Discussions

Over the past few weeks, the IT community as a whole has been stepping up and committing tremendous resources to ensure businesses and individuals can carry on their work and provide vital education and communications. Most are realizing that as a people and industry, we are all in this together. The best way to help clients, employees, and others make it through a global pandemic is through direct communications, prudent planning, and a strong commitment to excellence.

Your customers need you now more than ever before. Due to circumstances out of their control, as well as yours, many of these businesses are being negatively impacted on a financial and a structural perspective. Most non-essential organizations are closed or operating far below their standard capacity. Employees may be working from home or in different onsite locations to meet state and local health department guidelines. Some businesses are furloughing or eliminating employees to stave off long-term cash flow issues, while others maintain the status quo and hope for a quick resolution.

The reality is that relatively few companies will be in the black when the dust settles. Other than those currently making or delivering life-sustaining products and services, many organizations will be cash flow deficient, at least for the short-term, with much uncertainty surrounding their financial standing once things return to ‘normal.’

Government stimulus and supplier options may cushion or even erase the financial pain for some of your clients, but MSPs must prepare themselves for tough discussions regardless of duration. Before you begin those discussions, it’s essential to take a step back and assess your company’s current situation, and then start mapping out strategies to put your business and your clients in the best possible financial position in a post-pandemic world.

Shared struggles

As that old saying goes, ‘the best offense is a good defense.’ No matter how great your revenue streams are at present, every MSP should be developing fluid plans with various options to address all the actual and potential short-term scenarios. A proactive approach will help protect your financial situation and ensure your firm is fully capable of supporting your clients when the dust settles.

Start with a strategic view. Have you had one-on-one conversations with each client’s decision-makers to assess their operational and financial health? One goal should be to determine how long those businesses can maintain their current level of activity without reducing their workforce (if they haven’t already) or having to close their doors.

Now is the time for an honest dialog between entrepreneurs. In some cases, you may be able to share management best practices or COVID-19-related banking or government resources that can benefit both parties (more on that later). Listen and show empathy for their situation, since they may be experiencing similar problems, and remind them that you’re in this together.

The channel experts suggest MSPs hold firm on pricing and services. Support your clients as much as possible, especially those that significantly shifted their workforce. Consider options such as delayed billing, with extended repayment plans, or temporarily cutting services or trimming the unused seats from furloughs and layoffs. Avoid price reductions and contract negotiations as much as possible and suggest putting off those discussions for 90 days or more (if possible). You can be empathetic without negatively impacting your MSP’s long-term cash flow.

Don’t let COVID-19 reshape your financial model

Technology and innovation, two of the bright spots to come from this pandemic, are your value proposition, and MSPs should be careful not to undervalue their services in light of what some may view as a ‘buyer’s market.’ Most business owners have real concerns about revenue shortages and cash flow fluctuations, but some will leverage the situation to get price discounts and free services from their suppliers.

Are your current clients truly suffering financially? Many organizations, including managed services providers, are actually growing during the pandemic. Some essential businesses are busier now than ever before (i.e., grocers, cleaning services, delivery companies), and others are relying as much, if not more, on IT services to run and secure their operations.

That’s not an easy thing to gauge, and few business owners are going to willingly share accounting data to back up claims of lost revenue or increased expenses to cope with the pandemic. As with any relationship built on trust, MSPs must take their clients at their word and help them resolve any payment issues that arise over the coming weeks and months.

If businesses are asking your team to drop seat counts or cut back on services, it’s usually a sign that things are not going well. However, in the current situation, the leadership team may simply be conserving resources and altering its emergency business plan to position the company for a healthy return after the pandemic restrictions lift.

With all the available government funding and loan options, organizational strategies and options are plentiful, even for those companies that are furloughing employees or otherwise reducing their workforce. Don’t assume your clients don’t have a viable financial plan. Be confident and supportive in those discussions and realize that now is the perfect time to talk regularly with key decision-makers. These ‘executive to executive’ conversations can, if done well, strengthen your relationships and create a more open dialog with these clients. Check-in and ask what they need to make it through the current crisis.

Use caution. Some savvy business owners will use the situation to renegotiate contracts with suppliers, including those that provide and support the very IT infrastructure that is keeping them operational during the crisis. Hold firm and remind your clients of all the valued services your team continues to deliver and only discuss discounts on a case-by-case basis. Avoid making across-the-board pricing decisions and manage the exceptions.

In those limited cases, provide temporary adjustments with set expiration dates, and be sure to get it in writing ‒ with your attorney’s approval. As mentioned previously, the best offense is a strong defense. Protect your company’s long-term interest by developing a solid (yet fair) strategy for dealing with contract renegotiation and price reduction requests. Develop a plan that allows your team to show empathy without compromising your cash flow.

Be sure to remind your clients of the value you bring to the table. If your business has to cut back to make up for pricing discounts or a significant increase in A/R, it will be harder to protect and support their business. You are all in this together.

Share stimulus resources

Technology is just one area where MSPs can help their clients (and other businesses). Some tend to forget that B2B is about building more than sales relationships with other owners, but personal connections that can benefit both organizations. In uncertain times, most everyone is looking for the latest information about government and lending programs, as well as tips and best practices for navigating through the endless red tape.

If you’ve spent any time deciphering the details in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, or have a personal relationship with an expert on that topic, discuss those resources with other entrepreneurs. Collaboration and information sharing is vital in times of emergency. Discussing the stimulus options available to small businesses may be just as valuable as stopping a significant cybersecurity threat today.

After all, those financial incentives can help ensure your clients can cover their payroll expenses the next couple of months and keep most, if not all, of their seat licenses intact. That’s a win-win opportunity for MSPs.

Resources such as are not only invaluable for providers, but that same information can be just as advantageous for the businesses you support. Why not set up a webinar or teleconference for your clients with a CPA who has a firm handle on the current stimulus options? Using social media and newsletters, your firm can distribute similar resources and best practices to a broader business audience and make introductions to local experts who can help them navigate through the various grant and loan applications.

Now is the time to be proactive and creative. What else can you do to support your clients and community and give people a hand up in this time of crisis? After the dust settles, you can worry about lesser things and refocus sales and marketing efforts, but for now, the best support you may be able to offer some clients is empathy and information. Help them weather the storm and develop even stronger relationships. In the end, with a sound financial plan and effective communications, your standing with clients will be higher, and revenue streams and cash flow will return.

The post After the Dust Settles: Are You Ready For The Tough Financial Discussions appeared first on ConnectBooster.

source https://www.connectbooster.com/blog/after-the-dust-settles-are-you-ready-for-the-tough-financial-discussions/

How Hardware Leasing For SMB’s Could Strengthen Recovery Plans

Upgrade your clients’ critical infrastructure with cost-effective options like hardware leasing for SMB’s

We are in the midst of troubled times for most, if not all, of your clients. Amid the COVID-19 outbreak and the various levels of quarantines, most organizations are either closed or are seeing a significant drop in revenue and cash flow, and those issues may linger for weeks, months, or longer. Even clients that appear to be thriving during the pandemic, such as grocery stores and delivery companies, could be experiencing a variety of issues relating to staffing, worker and customer safety, and personal health. The hard reality is that bad things are happening, and we may not see a resolution to this situation for quite some time.

On the positive side, the severe financial impact that many businesses are anticipating, including MSPs and their clients, could be somewhat softened by government (local, state, and federal) stimulus programs. Combined with a vendor and supplier incentive programs, it might motivate some organizations to invest in automation and other technologies, especially those that boost efficiency or create new service opportunities.

No one knows at this stage what will happen in the coming months. However, forward-thinking MSPs are going back to what they do best: creating proactive plans for a number of business-case situations. Those strategies will vary by industry and financial circumstances, as well as by technology gaps uncovered during the current crisis, including failures in their business continuity preparedness.

Take time to reflect and organize

While many MSPs continue to set up remote office applications for clients and complete other projects, most expect things to slow down for a while before improving and eventually begin returning to a level of normalcy. The period in between is a great time to assess the status of clients and solidify your sales and marketing business once business (and life) routines resume.

Tech upgrades are sure to be top of mind for many organizations. After quickly implementing backup and remote workforce plans, many MSPs are noting deficiencies in their clients’ systems and infrastructure that they would like to address after the health crisis lifts.

There will be question marks around timing and funding. When can these projects be safely scheduled? Will equipment and materials be available at that time? And will your clients be in a sound financial position to make those investments (including the cost of your labor)?

The former plan depends heavily on direction from government officials. While IT services companies are listed among the essential businesses able to operate freely (or with minimal restrictions) by virtually every municipal and state government, as outlined by the U.S. Cybersecurity and Infrastructure Security Agency, some if not most upgrades will be able to wait until the COVID-19 risks abate. Now, however, is the perfect time to begin planning those projects.

Hardware leasing options to the rescue

The funding side of the upgrade and replacement discussion may be trickier. Your clients’ financial situation may ebb and flow during the crisis, though Federal stimulus programs and incentive-laden lending packages should ease cash flow concerns for many businesses. Even organizations that appear to have consistent or improved cash flow through the duration of the outbreak may be somewhat reluctant to spend capital in the short-term.

Hardware leasing is an excellent solution in times like these. Manufacturers are sure to offer significant discounts, special financing, and other incentives to spur computer and other tech sales, and MSPs can take advantage of those promotions without requiring their clients to invest precious capital. A Hardware as a Service (HaaS) lease or financing option allows you to upgrade customers’ systems during a buyer’s market and better prepare them for other potential business interruptions in the future.

With purchasing cycles interrupted, those organizations may have other replacement needs as well. MSPs can work up multiple proposals to get their clients back on schedule, as well as make necessary improvements, with HaaS equipment leasing and other financing options available to address more conservative budget projections.

Offering leasing options on new hardware is a great way to get your clients back on track and give your MSP an edge over competitors who don’t provide those types of alternatives. HaaS is also a safe investment for the SMB since many of the latest devices last three to five years or more without requiring replacement.

Hardware leasing lessens the risks for MSPs

The problem with traditional hardware procurement and equipment leasing programs is that instead of your customer fronting the cash for IT infrastructure improvements, MSPs have to cover the cost upfront. Chances are you won’t have that much capital, credit to spare after life returns to some normalcy. If your clients require equipment upgrades, you’ll be searching for leases and other financing options, or tapping into your firm’s cash reserves.

If MSPs purchase or lease equipment on behalf of their clients and add the cost to the next month’s invoices, the financial risk falls on providers. That financing scenario puts you in an uncomfortable position if the customer struggles after making it through the pandemic (a real possibility) and ends up closing without paying off that hardware ‒ as well as any other services you provided for that project.

Working with a large provider to cover the upfront equipment procurement costs is the safest option when it comes to maintaining a healthy cash flow for you and your clients. There is no need to get money upfront or directly secure leases and other types of financing. Automation allows MSPs to easily track information from manufacturers and financial partners, including payment status and monthly invoices.

Leasing through a large hardware provider minimizes your exposure and can simplify collections. For example, HaaS allows MSPs to procure the equipment their clients need and pass on the payments in their monthly invoices. With ConnectBooster’s integration with GreatAmerica Financial, providers can easily track payments to the finance company and automatically collect on those invoices. That helps you stay on top of A/R without the typical monthly collections headaches, and no MSP needs those hassles after dealing with the COVID-19 pandemic.

Craft a hardware leasing strategy

Now is the time to lay out a recovery strategy for your clients as well as your own business. Assess the current health and systems needs across your managed IT environment and develop an upgrade strategy, including financing options, to put into effect when all businesses resume normal operations.

Consider hardware leasing as an option for projects that may require substantial capital investments or for addressing smaller improvements for distressed or cost-sensitive clients. Pay close attention to the systems they need to operate after a disaster and long-term outage, or another pandemic.

Now is the perfect time to be proactive. Leverage the tools available from manufacturers and other suppliers, including HaaS and other equipment financing and leasing options, to better prepare your clients for what comes next.

The post How Hardware Leasing For SMB’s Could Strengthen Recovery Plans appeared first on ConnectBooster.

source https://www.connectbooster.com/blog/hardware-leasing-for-smbs-could-strengthen-recovery-plans/

Business Payments

With ConnectBooster, you possibly can automate real recurring income in your business. Set up automated billing to your clients only one time and remove late funds forever. Stop spending time on collections each month. As an alternative, you’ll have the money you want when you want it, to take a position back into the expansion of your business.

Improve your company’s image with a branded shopper interface. Your professional customer portal provides your prospects a safe place to pay their invoices and arrange autopay. Maintain your shoppers linked to your business with any offers, notifications or customized advertising and marketing communications that you simply choose.

ConnectBooster streamlines your workflow by helping the tools you’ve already invested in speak to each other. That means no more double-coming into information into your sales and billing software. Should you don’t use a CRM for your small business, ConnectBooster can still make your life easier. Options like automated bill reconciliation integrate immediately into your accounting tool to save you time and avoid errors.

Most software companies promise they will change your life, but ConnectBooster has the proof to back that declare up! 3 out of four prospects scale back their getting old accounts receivables by over 30 days and save time by automating tedious accounting tasks. Check out the impact we’ve had on our partners’ businesses.

Billing customers and accumulating money shouldn’t be a time-consuming chore! Save tons of of hours every year with a wide range of automation instruments invoicing emails, reconciling transactions, and buyer billing history statements.Bill the right amount based mostly on agreements in your CRM or accounting software program each time, with out manually adjusting particular person invoices.

Configure and automate dunning notifications to ship if a buyer is behind on payments. These might be specified to ship after any timeframe or to exclude specific customers.Send emails with a detailed account summary of what they had been charged and the providers they received.

Save time on bookkeeping by connecting your software platforms! Get rid of double-information entry and scale back human-errors between accounting and CRM software. Maintain transaction records and track funds made in quoting tools or GreatAmerica to reconcile them against invoices in ConnectBooster.

Enhance skilled look by offering clients a extra subtle option to pay their bill. Give clients absolute transparency into earlier and upcoming funds and manage their billing preferences. Irrespective of when your small business is open, clients can log in to pay their bill.

Executives from ConnectWise broke the information during IT Nation Explore on June 14th, in front of 1000's of attendees. “We are incredibly Business Invoices happy to share this latest model of our software, because it’s been one thing we have been pursuing with the ConnectWise group for some time,” stated Ryan Goodman, President of ConnectBooster.

The mixing creates a shared login for companions to make the most of a fully automated billing portal inside a single software. As an alternative of switching between two softwares, the combination with ConnectBooster permits customers to handle their invoicing and billing all inside ConnectWise Manage.

“Both our brands are at all times striving for the most recent approach our software can create a better expertise for companions, both by saving time or bettering accuracy. That's what this expanded integration is about, and we're excited to continue putting our companions’ wants first,” mentioned Travis Vigneau, Director, Solution Associate Strategy for ConnectWise.